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July 19, 2011

After years of looming power shortages, Ontario faces a periodic problem of excess electricity supply. This costly oversupply, which the province must take under fixed-price contracts with generators, leads to higher electricity bills for consumers. In “Plugging into Savings: A New Incentive-Based Market Can Address Ontario’s Power-Surplus Problem,” authors Benjamin Dachis and Donald N. Dewees recommend a solution: a new market mechanism that would facilitate payments to generators, who operate under fixed-price contracts, to reduce output when doing so would save money for the system as a whole.


Benjamin Dachis

Benjamin Dachis is Associate Vice President, Public Affairs for the C.D. Howe Institute. In his role, he furthers the Institute’s mission to improve Canada’s economic performance by enhancing the visibility, reputation and impact of its research and activities.

Donald Dewees

Donald Dewees holds an engineering degree from Swarthmore College, an LLB from Harvard University and a PhD in Economics from Harvard University.